At All Costs?

It may look like a deal, but calculate the true cost to own first.
Magazine Contributor
2 min read

This story appears in the July 2005 issue of Entrepreneur. Subscribe »

Before buying your next , check out how much it to own and operate. Don't just calculate fuel --taking into account the true to own, or TCO, is the smartest way to budget transportation over the long run. Ongoing expenses include maintenance, fuel, repairs, , financing, depreciation, and and/or fees.

Several websites have tools to calculate the TCO for vehicles. The most comprehensive and easiest to navigate is Edmunds.com, where the costs of ownership for models in every class of car and truck are listed (you'll need to add your ZIP code). Edmunds.com provides a breakdown of major ; the vehicle's true market value price, including options, delivery charges and taxes; and links for comparisons with similar vehicles.

Another site, www.intellichoice.com, ranks the top 10 2005 cars and trucks in several categories, including lowest ownership and operating costs, and highest retained value. The company also publishes buyer guides.

For fleet owners, www.runzheimer.com offers a fee-based comparative Fleet Cost Analysis service, as well as The Runzheimer Plan of Vehicle Standard Costs, which is used to reimburse company drivers of employee-provided business vehicles.


Editor and consultant Jill Amadio has been reporting on the for 26 years.

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